The Globe and Mail reports in its Friday, Dec. 8, edition that Ottawa has forced Canada's oil and gas producers into a moment of truth, with the release of its plan for a cap on the industry's greenhouse gas emissions. The Globe's Adam Radwanski writes that the framework of the plan indicates that the regulation will require sectoral emissions to fall 20 to 23 per cent from 2019 levels by 2030 which is less onerous than the government had earlier signalled. Pathways Alliance, which represents Canadian Natural Resources, Suncor Energy, Cenovus Energy, Imperial Oil and MEG Energy, was muted in its response, saying in a statement that it will "take the necessary time" to examine the framework's implications. Other industry groups, such as the Explorers and Producers Association of Canada and the Canadian Association of Petroleum Producers, though, treated it as an affront that will cost investments and jobs.
However, Mr. Radwanski says the response that will really matter will be from the companies themselves, whose leaders were mostly keeping their heads down on Thursday. He says it will be measured not in words, nor in vague long-term plans, but in how they allocate capital within the next couple of years.
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